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          Economy

          Wen elaborates China's positions on exchange rates

          (Xinhua)
          Updated: 2010-10-07 14:14
          Large Medium Small

          BRUSSELS - Visiting Chinese Premier Wen Jiabao has elaborated China's positions and perspectives on various issues, including the Chinese yuan appreciation and the investment environment, at the sixth China-Europe Business Summit and other occasions.

          At the business summit held Wednesday, Wen said China's trade surplus was explained by the specific structures of the economies involved in international trade instead of the exchange rate of the yuan.

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          "The trade issue should not be politicized. It is an issue of the (trade) structure," the premier said.

          He said China was never in pursuit of trade surplus, but in pursuit of balanced and sustainable trade.

          The world will by no means benefit from an appreciation of the yuan by 20 percent to 40 percent - as the US has demanded - because it will damage the Chinese economy, and the Chinese economy contributed about 50 percent of the global economic growth last year, according to him.

          Wen urged the European entrepreneurs not to pressure China on the yuan's appreciation, saying China "will stick fast to the exchange rate reform. We will gradually allow more flexibility in the yuan exchane exchange rate."

          He assured European investors of a good investment environment in China, saying China would stick to its reform and opening up policies.

          He said foreign businesses operating in China will enjoy the same national treatment as Chinese enterprises do on issues related to intellectual property, independent innovation, and government procurement.

          Also on Wednesday, Premier Wen attended the 13th China-EU Summit, co-chaired by him, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.

          He called on the EU to recognize China's market economy status and remove its arms embargo against it.

          He said the summit mechanism, the highest-level platform for bilateral political talks, should push for an end to the two outstanding difficulties.

          China would work with the EU to achieve balanced and sustainable development of bilateral trade, improve investment environment and enhance cooperation in financial and fiscal policy-making processes, he said.

          Wen said China had expressed its support for and confidence in the 27-member European bloc, and believed that a strong and stable EU is conducive to the world as well as to China.

          He also voiced the hope that the EU could treat China's development in an objective and fair manner, respect China's major concerns and core interests and formulate more positive and visionary China policies so as to further develop the comprehensive strategic partnership between the two sides.

          Following the summit, China and the EU issued a joint press communique, expressing their commitment to opening a new phase in their relations.

          At the China-EU High-Level Cultural Forum, Wen called for a strategic perspective and an open mind to foster more extensive, in-depth and enduring China-EU cultural relations.

          He said China and the European Union (EU) should also promote interactions between their cultural institutions and encourage cooperation in the cultural industry and related products and services.

          Wen met Belgium's King Albert II and conveyed to him the regards and best wishes from Chinese President Hu Jintao.

          He expressed his appreciation for the long-term efforts the Belgian royal family have made to promote the China-Belgium friendship, communications and cooperation.

          Premier Wen also held talks with his Belgian counterpart Yves Leterme, saying China wishes to encourage mutual investment and broaden cooperation with Belgium in high-end manufacturing, biological technology, new material and agricultural products processing.

          He congratulated Belgium for successfully hosting the eighth Asia-Europe Meeting (ASEM) and appreciated the efforts Belgium made to prepare for the 13th China-EU summit.

          Later in the day, Premier Wen concluded his in Brussels and left for Italy for a two-day official visit.

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